Categories: LegislationUK

32Red Casino Is Hit With Huge Fine For Failing Problem Gambler

The UK government has adopted a very strict stance on problem gambling in recent times with quite a few online gambling operators getting into hot water. This is mainly to combat the increase in gambling addiction throughout the country. The latest move to in this regards comes from the UK Gambling Commission (UKGC) who imposed a harsh penalty on 32Red, a popular online casino in the UK. The fine was imposed as 32Red did not do enough to prevent a problem gambler from accessing its website.

The online casino was hit with a £2 million fine for missing the signs of problem gambling and encouraging the player to continue. 32Red did not do anything to stop the problem gambler from accessing its online casino games and actually went on to give the problem gambler VIP status and additional bonuses instead of restricting his play.

According to the UK Gambling Commission, 32Red should have seen the danger signs when the gambler deposited £758,000 in a period of two years. Further signs that 32Red ignored was the player admitted that they had gambled too much and that they were playing just to recover from their losses.

The UKGC decided to impose a harsh penalty because gambling regulations required licensed operators such as 32Red to step in when there is evidence that a player is showing signs that they are addicted to gambling. The UKGC also discovered that 32Red did not investigate if the player was spending beyond their means, another requirement that is required of licensed operators.

Harsh Penalty For Multiple Violations

In a statement, Richard Watson, the executive director of the UKGC said

Instead of checking on the welfare of a customer displaying problem gambling behaviour, 32Red encouraged the customer to gamble more. This is the exact opposite of what they are supposed to be doing. Operators must take action when they spot signs of problem gambling and should be carefully reviewing all the customers they are having a high level of contact with

32Red actually encouraged the gambler's addiction by giving them VIP status. Additionally, the customer regularly made comments that according to the UKGC should have been obvious signs that the player was addicted.

Money laundering restrictions were also not followed by 32Red. The company did not check on the customer's source of wealth, even when the customer's monthly deposits greatly exceeded the customers supposed income.

In response, 32Red, which is part of the larger Kindred Group of gambling companies, accepted the fine and started to adjust its operating procedures to be stricter on potential problem gamblers. A spokesperson for the company said that the company is dedicated to ensuring its customers can play in a safe and secure environment and is doing its best to improve its business processes.

Kate Gonda

Kate is fairly new the whole casino industry, with a background in finance she often found herself with clients at the best casinos, she enjoys spinning the wheel!!!. She will be providing a insight into the UK industry

Share
Published by
Kate Gonda

Recent Posts

LV Sands, Concerned About Online Competition Amid Plan to Build $6bn Casino

Summary: Las Vegas Sands chairman and CEO Rob Goldstein is concerned about the impact of…

4 weeks ago

Biloxi Casino Plans Advance as MGC Considers Two Venues

Summary: Tullis Gardens Hotel and the Tivoli development are in the works. The casinos would…

1 month ago

Rio Hotel & Casino Finishes Phase One of Massive Property Renovation Project

Summary: Rio Hotel & Casino has completed phase one of its multi-year property-wide renovation project.…

2 months ago

Industry Heavyweight Execs Talk Tech Future at TribalNet Conference & Tradeshow

Summary: Monday’s TribalNet Conference & Tradeshow brought together gaming industry executives who discussed the future…

2 months ago

Nevada Regulators Propose Solution for Armed Casino Security Shortage

Summary: The Nevada Gaming Control Board addressed the shortage of armed casino security following the…

2 months ago

Venetian Waiting for Final Approval for $550m Dividend Distribution

Summary: The Venetian in Las Vegas is getting ready for a massive dividend distribution. The…

3 months ago